The head of FTX is considering a revival

20.01.2023

Some FTX customers still see value in relaunching the international trading platform, even though the exchange’s founders and former top executives have faced criminal charges.

Ray reportedly wants to explore whether reviving FTX.com could compensate customers better than selling the exchange or liquidating its assets.

The bankrupt Bahamas exchange and legal partner Sullivan & Cromwell said Tuesday that FTX.com and FTX US have a “significant digital asset shortage.”

The disclosure said FTX.com lost about $323 million in crypto-assets after it filed for bankruptcy, and $426 million in crypto-assets were turned over to Bahamian authorities. The team claimed a total of $5.5 billion in liquid assets, including $1.6 billion in crypto-assets, to recover.

However, the founder and former CEO claimed that the numbers in the disclosure related to FTX US were inaccurate and said that the US unit was still solvent.

FTX and sister hedge fund Alameda Research filed for Chapter 11 bankruptcy protection on Nov. 11 after facing a liquidity crunch following disclosures about improper reserve disclosure and misappropriation of client funds.

Bankman-Fried was charged with eight counts, including wire fraud and conspiracy to launder money. Earlier this month, he pleaded not guilty to the fraud charges.